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Goodfood Market Corp. (TSE:FOOD) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a curious result overall, with revenues coming in 4.0% below what the analysts had expected, at CA$39m. The company broke even in terms of statutory earnings per share (EPS). Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Goodfood Market
Taking into account the latest results, the current consensus, from the two analysts covering Goodfood Market, is for revenues of CA$152.7m in 2025. This implies a measurable 2.1% reduction in Goodfood Market's revenue over the past 12 months. Per-share losses are predicted to creep up to CA$0.055. Before this earnings announcement, the analysts had been modelling revenues of CA$163.2m and losses of CA$0.05 per share in 2025. Overall it looks as though the analysts are negative in this update. Although revenue forecasts held steady, the consensus also made a moderate increase in to its losses per share forecasts.
The consensus price target fell 8.0% to CA$0.57, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would also point out that the forecast 1.7% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 4.0% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 3.3% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Goodfood Market to suffer worse than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Goodfood Market. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Goodfood Market's future valuation.